Economy and Business

6 Key Concepts

Scarcity

The problem of have limited resources, such as man-made or natural resources, such as Water, Electricity, soil, sugar etc.

CELL

Capital

Entrepreneurship

Land

Labour

Manufacturing equipment such as machinery or tools for a certain job

Organisations improving and making businesses bigger and better

resources that can be found on land such as coal, water, iron and many more. These are used to make equipment and essential ingredients for living

Everyday people that work. They work for businesses who supple goods and services for consumers and that is how a company remains successful.

Making Choices

Making choices is when consumers or producers pick a choice that will help them out and make them more successful. Consumers make choices to buy goods and services for the lowest price available to save their money for further investments into businesses

Choices FEBL

Financial Choices

picking goods and services for a lower price for the consumer to remain a comfortable balance with money

Employment

What career path to follow

Business Decisions

What or Where to produce goods or services

Legal action

whether consumers decide to take legal actions over faulty products

Specialisation and Trade

Trade

Importing goods that businesses or countries cannot provide them self. They buy these goods from foreign countries which allows the global economy to become stronger

Specialisation

Businesses or countries that focus on the production of a particular good. This can occur if they are in the right region or for production of the good or they have experienced people that specialise with that particular good.

Interdependence

The way we rely on others to satisfy our needs and wants.

Allocation and Market

Allocation

The way we distribute our resources among producers

Market

The exchange of goods among buyers and sellers

Economic Performance and Living Standards

How we measure how economically strong a country is

Gross Domestic Product

total value of goods and services produced in country in a year

Inflation

General increase in prices because of goods and services

Unemployment Rate

Percentage of people who are unemployed

5 Economic System

Traditional or Subsistence Economy

Producers are self-sufficient which means they produce enough to survive mainly for them or their family.

Market Capitalist

When producers exchange goods and services with consumers in return for money

Planned Capitalist

when people own productive resources but the government determines what happens with the outcome or product

Market Socialist Economy

the government owns the productive resources while individuals decide the production or outcome of these

Planned Socialist Economy

The government decide everything for how to produce, what to produce and whom to produce for

Importing, Exporting and Outsourcing

Importing

Exporting

Outsourcing

Outsourcing is when a country makes the materials in your country and ship it out to other countries from them to make it for you, for cheaper

Importing is when a country buys goods and services from another country for exchange of money

Exporting is when a country gives another country goods and services for exchange of money

Scams

Investment / Online Scams

Emotional Scams

Charity

Psychic

Romance

When a person online makes people fall in love with them. these people use model photos for people to fall in love with them. When a victim is in love with them, the scammer will ask for money, making it seem sad and something is wrong. These victims will automatically send money and then wont see a response

Scammers asking for donations saying a specific charity needs help and many children will die if you dont support. The empathetic people such as older people will donate and hear nothing about it

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Phishing Emails

Phishing Emails are when a scam organization sends out hundreds of thousands of emails saying you have won the lottery. It is fake and they ask for your bank account details to log the money into your account. They will take you account details and buy whatever they want with it.

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Skimmer

When Scammers place a skimmer that reads information of peoples credit card when they take out money at a ATM. This skimmer is them pulled out an put onto a machine which can turn the info into a real life usable credit card.

Economic Systems

Capitalist

A person who uses their wealth to invest in trade and industry for profit

Socialist

Community own the means of production

Capital

manufacturing equipment for use of a certain job

Opportunity

More variety, choices and chances / possibility

Egalitarianism

that all people are equal and deserve equal rights

Enterprise

Ideas/ Organisation

inequality

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